Career as Equity Analyst
Equity Analyst is one of the most in-demand job profiles in the financial world. The role of an equity analyst is to research and analyse financial data and public records of various companies and use this analysis to ascertain the company’s stock value and to predict the company’s future financial picture. Brokerages or financial firms mostly employ equity analysts. Aspiring students and young professionals who are inclined, skilled problem solvers, logical thinkers, possess market knowledge should consider a career as an equity analyst. The role of equity analyst has become very important as well as critical, especially in India which is witnessing accelerated corporatisation of business on the one hand and increase in domestic savings channelled to equities, largely through mutual funds and insurance, and partly through direct investments. There are plenty of entry-level and mid-managerial level jobs available at the moment in the market for the aspiring equity analysts to explore.
- About Equity Analyst :
- Job Profile |
- How do I get there?
Job Profile
The profession of an equity analyst includes
providing knowledge expertise and financial advice related to
stocks and bonds to investment advisors, brokers, and individual
investors. Depending upon the organisation, equity analyst shares
several core responsibilities which include security performance
analysis and pricing involving the analysis of financial reports
and statements of the companies to examine the market performance
and pricing of the stocks in the market.
This role integrates data gathering and assessment with financial
modelling and forecasting to make informed decisions about
investment opportunities and risks on the buy side, sell side, or
both. This is done with the help of data-modelling programs and
methodologies, combined with performance and financial data which
has been gathered and analysed, to provide investment advisors with
all of the information they need to make financially sound
decisions regarding stocks and bonds. Equity analyst should be
keeping an eye on the industry trends as well as preparing various
reports for both internal use and public presentation forms part of
the responsibilities of the equity analyst.
There are plenty of growth prospects for an equity analyst
professional. As the importance of data is gaining tremendous
momentum, an equity analyst must make themselves relevant by
adopting data handling techniques. People with the amalgamation of
skills consisting of handling big data, internet of things,
artificial intelligence, blockchain, etc. and domain competency
will be in great demand, with a glorious
future.
For an equity analyst, the average salary in India is Rs
7,50,000. The average starting salaries for an equity analyst
in India may range between Rs 2.5 lakh to Rs 4 lakh per annum.
Professionals with extensive experience between five to15 years may
fetch anything between Rs 8 lakh to Rs 15 lakh per annum. In
contrast, the ones with more than 15 years of experience may get an
average salary in the range between Rs 15 lakh to 25 lakh. In the
US, an equity analyst professional can earn a median salary of
80,000 USD.
Future Growth Prospects and How to get there faster
Pros and Cons of Being an Equity Analyst
Pros
-
Equity analyst profile presents a challenging as well as a rewarding career opportunity for people passionate with stocks and financial environment.
-
The financial sector is a quite competitive and growing domain.
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Good compensation and growth vis-à-vis other profiles in the market.
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Interaction with high profile management and finance people.
Cons
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The job can be stressful at times with stretched hours, travelling at times and client meetings.
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Suitable for those who are interested in number crunching and possess financial domain expertise.
How do I get there?
How much does it cost?
What are the Top Colleges where one should be studying to become an Equity Analyst?
Post completion of B.Com and M.Com, aspirants
can opt for MBA in finance or financial analysis from various
management institutes. Students can also opt for CA or CFA courses.
Below list provides renowned institutes offering courses in equity
analyst:
|
Ranking of College |
Name of College, City |
Programme Fees |
|
1 |
Narsee Monjee Institute of Management, Mumbai |
MBA – Rs 8,13,000 for 2 years |
|
2 |
International Management Institute, New Delhi |
PGDM – Rs 17,68,000 for 2 years |
|
3 |
SP Jain Institute of Management and Research, Mumbai |
PGDM – Rs 16,25,000 for 2 years |
|
4 |
Xavier Institute of Management, Bhubaneshwar |
MBA – Rs 17,30,000 for 2 years |
|
5 |
ICFAI Business School, Pune |
MBA – Rs 14,04,000 for 2 years |
|
6 |
Birla Institute of Technology and Science, Pilani |
MBA – Rs 12,00,000 for 2 years |
Books and other Study Material
Equity analyst is a highly skilled profile and
requires knowledge of the financial domain. There are good study
materials available on the internet to gain a deeper understanding
of the concepts. Some of the books that are recommended
include:
-
The Intelligent Investor by Benjamin Graham
-
Competitive Strategy by Michael Porter
-
Buffettology by Mary Buffett and David Clark
Apart from these books, aspirants can opt for CFA books, read annual reports of companies, blogs and magazines related to finance to gain detailed knowledge about the field.
What if the career as an equity analyst does not work out for me? What are the other options for an equity analyst with these credentials?
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Content on this page is by Career Expert Mrs. Kum Kum Tandon MA (Psychology), M.Ed, Diploma in Educational Psychology, Vocational Guidance & Counseling (NCERT, Delhi) | View Complete Profile |